Flat Rate Scheme - backdate?

[maverick18]

Hi All,

I recently got my company VAT registered.

Post this, I have now applied for FRS.

However, I dont think I will receive an acknowledgement until next year, which means I will not be considered under FRS when I file my VAT returns on 31st Dec, 2010.

My question is, can I backdate (reclaim the VAT paid in Dec 2010) the VAT under FRS when I submit VAT returns in March 2011?

I have requested the FRS to be applicable from Oct 2010, same as the date of VAT Registration.

If I cannot do so, what are the other options available to me?

Thanks!

[Clare@InTouch]

When you apply for flat rate you add in the date that you want to be registered from, and it's usually the start of your current VAT period. If your VAT quarter is 01/10/2010 to 31/12/2010 then there's plenty of time for you to receive notice approving the scheme before the VAT return for that period becomes due on 31/01/2011 (or 7 days later as you'll be filing onine).

Don't forget your 1% discuont for the first year of VAT registration too.

[maverick18]

When you apply for flat rate you add in the date that you want to be registered from, and it's usually the start of your current VAT period. If your VAT quarter is 01/10/2010 to 31/12/2010 then there's plenty of time for you to receive notice approving the scheme before the VAT return for that period becomes due on 31/01/2011 (or 7 days later as you'll be filing onine).

Don't forget your 1% discuont for the first year of VAT registration too.

Hi Clare,

Thank you for this.

Forgive my ignorance, but I do have some pretty silly questions here.

My VAT Registration is effective 25/10/2010. Does that mean the FRS scheme would also be applicable from 25/10/2010, if approved? I applied for FRS only 3 days back.

Since my VAT registration is effective 25/10/2010, does that mean my first quarter would end 25/01/2011?

And I have another 30 days to pay the VAT for 3 months period of 25/10/2010 to 25/01/2011? If this is true, then I have time until 25/02/2011 to await FRS approval, before I pay the VAT, correct?

Thanks!

[Clare@InTouch]

Hi Clare,

Thank you for this.

Forgive my ignorance, but I do have some pretty silly questions here.

My VAT Registration is effective 25/10/2010. Does that mean the FRS scheme would also be applicable from 25/10/2010, if approved? I applied for FRS only 3 days back.

Since my VAT registration is effective 25/10/2010, does that mean my first quarter would end 25/01/2011?

And I have another 30 days to pay the VAT for 3 months period of 25/10/2010 to 25/01/2011? If this is true, then I have time until 25/02/2011 to await FRS approval, before I pay the VAT, correct?

Thanks!

Hi Maverick,

Your VAT certficate should show your quarter dates - if the registration is effective 25/10/2010 then it's possible your first quarter would end 31/01/2011. In that case the return would be due by the end of February 2011, so loads of time for the FRS approval to come through.

[maverick18]

Hi Maverick,

Your VAT certficate should show your quarter dates - if the registration is effective 25/10/2010 then it's possible your first quarter would end 31/01/2011. In that case the return would be due by the end of February 2011, so loads of time for the FRS approval to come through.

Thanks!

I checked the VAT Certificate and it says 'Returns to be made in respect of periods ending 31 December 2010 and three monthly thereafter'.

Does this mean I have to submit the VAT by 31st January 2011?

And if I havent heard about the FRS approval by then, I will have to pay the normal rate of 17.5%?

[Clare@InTouch]

Thanks!

I checked the VAT Certificate and it says 'Returns to be made in respect of periods ending 31 December 2010 and three monthly thereafter'.

Does this mean I have to submit the VAT by 31st January 2011?

And if I havent heard about the FRS approval by then, I will have to pay the normal rate of 17.5%?

The VAT for the quarter ended 31/12 would have to be filed by 31 January 2011, but as you'll need to file online you get an extra 7 days after that.

You should have heard back from HMRC before then - one that I sent on 29/11 was approved by 14/12, and that seems quite average. If you've not heard back by mid January just give them a ring to check.

[maverick18]

The VAT for the quarter ended 31/12 would have to be filed by 31 January 2011, but as you'll need to file online you get an extra 7 days after that.

You should have heard back from HMRC before then - one that I sent on 29/11 was approved by 14/12, and that seems quite average. If you've not heard back by mid January just give them a ring to check.

Great!

Many thanks ..appreciate all your inputs

[maverick18]

The VAT for the quarter ended 31/12 would have to be filed by 31 January 2011, but as you'll need to file online you get an extra 7 days after that.

You should have heard back from HMRC before then - one that I sent on 29/11 was approved by 14/12, and that seems quite average. If you've not heard back by mid January just give them a ring to check.

sorry i forgot my original question

If I happen to hear from HMRC regarding FRS approval before 31st Jan, 2011, I am allowed to calculate VAT for the period Oct-Dec 2010 as per FRS? Am I correct?

Phew ...my final question ..thanks in advance

[Clare@InTouch]

sorry i forgot my original question

If I happen to hear from HMRC regarding FRS approval before 31st Jan, 2011, I am allowed to calculate VAT for the period Oct-Dec 2010 as per FRS? Am I correct?

Phew ...my final question ..thanks in advance

No worries

Exactly - the letter they send out approving the scheme will tell you when it's effective from. If you've not heard back by mid-January just call them to give them a nudge.

Remember to also include bank interest in your flat rate calculations - not that you'll probably have a huge amount of it these days!

[rmmc]

If I happen to hear from HMRC regarding FRS approval before 31st Jan, 2011, I am allowed to calculate VAT for the period Oct-Dec 2010 as per FRS? Am I correct?

The answer is here

Section 5.5